A wave of tariff increases slated for the summer threatens to blunt momentum in the $120-billion sporting-goods business, even as the industry posted a 2.9% sales gain in 2024 — topping U.S. GDP growth of 2.8% for only the fourth time in 15 years.
“Activity trends continue to move on an upward trajectory, but there are clouds of caution on the horizon due to the tariff situation, which we expect will lead to rising costs associated with participation,” writes Alex Kerman, senior director and head of research at the Sports & Fitness Industry Association, in the association’s newly released 2025 State of the Industry report.
Profits Up, Inventories Balanced
Last year was the most profitable in a decade: 65% of sporting-goods companies reported higher earnings, while only 21% saw profits fall. Inventory pressures continued to ease, with 47% of executives calling current stock levels “comfortable”— a respite that could evaporate if tariffs disrupt supply chains in 2025.
Industry confidence remains stout despite those risks. Ninety-six percent of executives describe the sector’s present health as either strong or average, and 99% express optimism about conditions a year from now. Nearly 94% expect to maintain or increase R&D spending this year, betting that product innovation can offset any price shock for consumers.
Participation Sets a Record but Gaps Persist
Americans kept moving: 247.1 million people aged six and older — exactly 80% of the population — were active in 2024, the seventh straight annual increase and the highest rate the SFIA has recorded since 2010.
Pickleball remained the industry’s breakout, climbing 45.8% year-over-year and soaring 311% over the past three years. Yoga, snowboarding and wrestling each registered gains of about 9%.
Yet income disparities linger. While 87.3% of households earning more than $100,000 were active last year, the rate fell to 63.2% among households under $25,000. Converting newly active, lower-income participants into consistent customers “remains a major opportunity for the industry,” the report notes.
Tariffs Top the Worry List
Asked to rank the issues most likely to impede growth, executives put “possibility of increased tariffs” first, ahead of market-share battles, slower consumer spending, inflation and logistics costs. Seven of the top eight concerns relate to macro-economic or supply-chain pressures.
“Surpassing GDP growth and achieving record-high profitability levels shows the industry can thrive as an economic powerhouse,” Kerman writes. “The challenge now is navigating policy headwinds without losing the participation gains we’ve fought to secure.”
